The Bank of England holds and says it will cut rates within a month or two. Malaysia’s central bank is more upbeat about growth as it holds. China’s exports rebound, and in the Philippines, soft consumer spending drags on GDP growth.
In our bonus deep dive interview, ANZ New Zealand Senior Economist Miles Workman looks at the uncertainties shrouding New Zealand’s housing market right now, and how developments in Auckland might affect the rest of the country.
5 things to know:
The Bank of England’s rate-setting committee voted 7-to-2 overnight to hold its cash rate at 5.25%, but said a rate cut was likely within months, as long as wage inflation slows as forecast, says ANZ Head of G3 Economics Brian Martin.
Malaysia’s central bank also held rates yesterday at 3%, as expected. ANZ Chief Economist for Southeast Asia and India Sanjay Mathur says the tone of Bank Negara’s commentary was more upbeat.
GDP growth in the Philippines was lower than expected in the March quarter, with an annual rate of 5.7% higher than in December, but lower than the consensus for 5.9%. Sanjay says lower private consumption was the drag.
China’s exports rose 1.5% in April from a year ago, slightly higher than the consensus forecast and reversing a fall in March. Imports were up 8.4%. ANZ Senior China Strategist ZhaoPeng Xing says the export outlook is upbeat.
China reports CPI and PPI data tomorrow. ZhaoPeng is expecting the CPI to show annual growth of 0.2%, up a touch on last month, with the PPI to be down 2.5%. That would again be a better reading than March, and also due to higher domestic oil prices, he says.
Cheers
Bernard
PS: Catch you next week with coverage of that Chinese price data and a preview of Australia’s Budget on Tuesday night
